Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

Which of the following financial statements are normally included in public reports?

Statement of Cash Flows, Tax Return, and Payroll Register

Trial Balance, General Ledger, and Bank Reconciliation Statement

Income Statement, Budget Report, and Audit Report

Balance Sheet, Income Statement, Statement of Cash Flows, and Statement of Changes in Equity

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Verified step by step guidance

Step 1: Understand the purpose of public financial reports. Public financial reports are designed to provide stakeholders, such as investors, creditors, and regulators, with a clear picture of a company's financial health and performance.

Step 2: Identify the key financial statements typically included in public reports. These are the Balance Sheet, Income Statement, Statement of Cash Flows, and Statement of Changes in Equity. Each serves a specific purpose: the Balance Sheet shows the company's financial position, the Income Statement reflects profitability, the Statement of Cash Flows tracks cash movements, and the Statement of Changes in Equity explains changes in ownership equity.

Step 3: Eliminate options that are not typically part of public financial reports. For example, Tax Return, Payroll Register, Trial Balance, General Ledger, Bank Reconciliation Statement, Budget Report, and Audit Report are internal documents or specialized reports not included in standard public financial reporting.

Step 4: Confirm the correct answer by cross-referencing with accounting standards such as IFRS (International Financial Reporting Standards) or GAAP (Generally Accepted Accounting Principles), which mandate the inclusion of the Balance Sheet, Income Statement, Statement of Cash Flows, and Statement of Changes in Equity in public reports.

Step 5: Summarize the reasoning: Public financial reports focus on providing comprehensive and standardized financial information to external stakeholders, which is why the Balance Sheet, Income Statement, Statement of Cash Flows, and Statement of Changes in Equity are included.